Akbank’s results for the second quarter of 2008 showing continued growth

Akbank’s results for the second quarter of 2008 showing continued growth

Akbank, Turkey’s leading bank and the most valuable company on the Istanbul Stock Exchange, has today announced its financial results for the second quarter of 2008, showing continuing financial progress.

The highlights of the results are:

• Net profit for second quarter of 2008 of TRY 1,215 m (8% increase year on year );
• Total assets increased by 18% year to date;
• Growth in the overall loan portfolio of 23.4% year to date, versus sector growth of 20.0%;
• Growth in deposits of 16 % in the first half of 2008;
• Growth in net fee and commission income of 14% year on year, driven by credit card and consumer loan related commissions.

Akbank’s strategy is to provide services beyond traditional distribution channels through innovative retail outlets such as “Credit Express” (consumer loans) and “Big Red House” (mortgages) as well as through non-traditional channels including Retail and Corporate Internet Branches, Telephone Banking Centres, ATMs, Points-of-sale and mobile phone technology.

Akbank has seen continued growth across its operations during the quarter under review. Corporate and Commercial loan operations, representing 55% of Akbank’s loans, grew strongly, up 54% and 41% respectively for the year to date. Consumer loan balances for the period were TRY 9,972 million, with above sector growth in mortgage loans of 18.6% versus 17.7% for the sector; Small Business loans totaled TRY 7,893 million, with performance enhanced by new loan approval processes; and credit card balances were TRY 4,298 million, representing a year to date growth of 12.2%.

Akbank continues to innovate and establish mutually beneficial relationships to drive customer growth. Through its relationship with department stores Boyner Holding and Carrefour SA, Akbank intends to achieve strong growth in its number of credit cards in circulation, resulting in the acquisition of a greater market share. Additional “In Store” branches (consumer loans) will be opened, increasing Akbank’s distribution network and further promoting opportunities to cross-sell banking products.

In addition, collaboration with Boyner Holding, under the “One” brand, will provide access to 2.5 million existing Boyner Holding customers and exposure to its network of 330 stores.

Commenting on the first quarter results, Akbank Chief Executive Officer Zafer Kurtul said:

“We are delighted by Akbank’s continued strong financial performance in the second quarter which we believe reflects our continued focus on innovative banking solutions and the high standard of our services. We have grown our Corporate and Commercial operations during the period while solidifying our position in the Consumer and SME spheres. Furthermore, our position as a leading bank in Turkey has been enhanced by customer growth and the establishment of mutually beneficial alliances with partners such as Boyner Holding and Carrefour SA. We look forward to expanding these relationships further.”

“We continue to be strongly committed to the development of the business in the current economic climate. We remain positive about our prospects for the future and the opportunities to deliver value to our shareholders.”

8th August 2008

Global Finance has selected Akbank as the Best Bank in Turkey for 2008

Global Finance Magazine has named the “Best Emerging Market Banks in Central and Eastern Europe” in an exclusive survey. Akbank was selected as the Best Bank in Turkey. According to the New York based Global Finance magazine’s survey the banks were evaluated under different criteria such as growth in assets, profitability and strategic relationships. Global Finance selected Akbank as the Best Bank in Turkey for 2008 considering its superior performance against such criteria as; growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.

03 June 2008

Mr. Hayri Çulhacý promotes to Advisor to the Chairman

Mr. Çulhacý will undertake a new role in Akbank as the Advisor to the Chairman as of 29 May 2008. His previous responsibility regarding Investor Relations will now be taken over by our CFO; Mr. Atýl Özus.

Mr. Atýl Özus joined Akbank in November 2000 as Vice President in charge of Financial Control and Risk Management and then was promoted to Senior Vice President. In December 2007, Mr. Özus was appointed as the CFO. Mr. Özus was an Audit Manager at Ernst&Young before joining Akbank. He is a graduate of the Faculty of Business Administration at Bosphorus University.

Akbank signed a loan agreement with KfW Entwicklungsbank to finance SME’s and Farmers

Akbank signed a Loan Agreement with KfW Entwicklungsbank on May 28, 2008 for EUR 77 million with 3,5 years maturity. This loan has a purpose of providing financing to SME’s and farmers and is supported by EU under European Commission’s SME Finance Facility – 2006 and partly refinanced by Counsel of Europe Development Bank (CEB).

Akbank’s results for first quarter of 2008 show continuing progress

Akbank, Turkey’s leading bank and the most valuable bank on the Istanbul Stock Exchange, has today announced its financial results for the first three months of 2008, showing continuing financial progress.

The highlights of the results are:

Net profit for first three months of 2008 of TRY 720m (61% increase year on year);

Total Assets increased by 13% year to date;

Growth in the overall loan portfolio of 11% year to date, inline with sector loan growth;

Growth in deposits of 14% for the first three months of 2008 against sector growth of 8% year to date;

Growth in net commission income of 9% y-o-y, driven by credit card and asset management commissions.

Akbank’s strategy is to marry leading-edge technology to high quality customer service, providing innovative solutions to the needs of its customers through nearly 730 branches and innovative retail outlets such as “Credit Express” (consumer loans) and “Big Red House” (mortgages) as well as through non-traditional channels including Retail and Corporate Internet Branches, Telephone Banking Centres, ATMs and mobile phone technology.

Akbank has seen continued growth across the range of its operations during the quarter under review. Consumer loan balances were TRY 9,254 million, with demand particularly high for general purpose loans and mortgage loans ; Credit Card balances were TRY 3,897 million; and SME loans totaled TRY 14,434 million. Growth in corporate loans was particularly strong, up 29% as a result of investment and acquisition financing. Corporate loans reached TRY 15.6 billion.

Similarly Akbank achieved very strong growth in deposits, particularly in FX deposits with 8.6%in dollar terms. Growth in TRY deposits was 7.5%.

Akbank has continued to focus on cost containment, with the Bank’s cost income ratio standing at 40.9% in the quarter under review. Operating expenses as a percentage of average assets have also remained stable.

Commenting on the first quarter results, Akbank Chief Executive Officer Zafer Kurtul said:

“Akbank’s results for the first three months of 2008 underline our position as a leading bank in Turkey and leave us well-placed for further success in the future. Our success has been driven by a continual focus on delivering innovative solutions to our customers that has enabled us to grow our business in key customer segments significantly faster than the market in Turkey more broadly.

“Our measured approach to the development of our business has enabled us to avoid any significant negative impact from the global credit crunch and as a result we are very optimistic about our prospects for the future and confident of our ability to deliver value to our shareholders. We believe that Turkey’s emerging market presents a number of opportunities for continued growth and we also expect to be beneficiaries of Turkey’s continued development and the growing recognition of our nation as a financial and economic ‘bridge’ between East and West.”

10th May 2008

RESOLUTIONS OF THE GENERAL MEETING OF AKBANK T.A.Þ. HELD ON MARCH 28, 2008

1- Approval of the reports of the Board of Directors, Statutory Auditors and Independent Auditors,

2- Balance sheet and profit and loss accounts for 2007 have been ratified and each of the Members of the Board of Directors and Auditors have been released from the liability with regard to the operations and accounts of 2007,
3- Net profit for 2007 will be distributed in conformity with the proposal of the Board of Directors, as follows;

In accordance with the 82nd article of the Articles of Association of Akbank, the dividend to be distributed from the 2007 net profit of YTL 1,994,294,332.74 will be as follows;

- Gross YTL 150,000,000 , equal to 5% of the paid-in capital of the Bank as of 31st December 2007 which is YTL 3,000,000,000 , will be allocated as primary cash gross dividend; and gross YTL 570,000,000 will be allocated as secondary cash gross dividend. Total gross dividend of YTL 720,000,000 , equal to 24% of the paid in capital, will be distributed to shareholders,

- Gross YTL 510,821.92 as cash dividend will be paid to the Chairman and the members of the Board, in accordance with the articles of association,

- Cash dividend payments will start on 31th March 2008,

- YTL 8,024,798.51 gains from the sale of fixed assets and subsidiaries will be allocated to Capital Reserves and after allocating YTL 156,765,798.83 to Legal Reserves, the remaining profit will be retained under Extraordinary Reserves,

4- The approval of Mr. Bülent Adanýr and William Joseph Mills as Board members to the freed places on Board during the year for the remaining period,

5- Amendment of the 24th article of the Bank’s Articles of Association according to suggestions of the Board and permission of related authorities,

6- The appointment of Baþaran Nas Yeminli Mali Müþavirlik A.Þ., a member of PricewaterhouseCoopers, as the independent auditor for 2008 and 2009,

7- The Board of Directors has been empowered in connection with matters falling within the scope of Articles 334 and 335 of the Turkish Commercial Code,

In accordance with the 8th item of the Agenda, Shareholders have been informed that YTL 447,604.05 has been donated to foundations and other charity organizations in 2007.

Erol Sabancý to move to Honorary Chairman status as Ms. Suzan Sabancý Dinçer becomes Chairman

Following the General Assembly meeting on 28th March 2008, the Board of Directors of Akbank has unanimously voted Mr. Erol Sabancý as Honorary Chairman and Ms. Suzan Sabancý Dinçer as Chairman of the bank.

Mr. Erol Sabancý will continue to devote his time and energy by continuing to sit on the Board of Akbank and will put to use his long time experience by advising to the board.

Mr. Sabancý in his message has pointed out to the overwhelming development of Akbank from a local bank to a leading driver of the Turkish Economy; by becoming the most valuable, most stable and innovative bank of Turkey. Mr. Sabancý said; “Akbank is continuing to reach new heights with enthusiasm and without hesitation, with a feeling of responsibility, as a result of the strength of its accumulated past experience and the pace that it has gained from its own achievements. I believe with Ms. Sabancý Dinçer’s visionary and dynamic leadership, the bank will enhance its leading position in the region and in Turkey”.

Ms. Sabancý Dinçer in her message pointed out to the stability and strength of Akbank. She said that “the Bank’s aim is to become the leading bank in the region by providing the best banking experience in Turkey to its customers and offering outstanding sustainable value for its stakeholders. Akbank is ready to reach new targets with its highly professional and institutionalized management structure, its energetic work force, its well established brand that points to trust and innovation, and its devoted shareholder base”.

Global Finance named Akbank as the Best Emerging Market Bank in Turkey

In March the Global Finance magazine announced the 2008 Best Emerging Bank Awards on a country and regional winner basis.

Global Finance named Akbank as the Best Emerging Market Bank in Turkey.

Best Emerging Market Bank award criteria for choosing the winners included: growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.

A report on all of Best Emerging Market Banks in Central and Eastern Europe will appear in the May 2008 issue of Global Finance.

March 25, 2008

Tax credit of TRY 225 million has been registered as income to Akbank’s financials

Akbank has agreed with the Ministry of Finance to receive TRY 495 million of tax credit of which TRY 270 million was booked as income in 2007, foregoing its remaining tax receivables of TRY 259 million.

Following this announcement, Akbank has registered TRY 225 million as income to its financials.


March 20, 2008

Dividend Announcement

Akbank plans to distribute TRY 720 mn, 38% of its 2007 distributable profit, as cash dividend to its shareholders, starting from March 31, 2008. This ratio corresponds to TRY 0.24 dividend per TRY 1.00 nominal share

03 March 2008

The agenda of Akbank’s Ordinary General Meeting, that will be held on March 28, 2008

The Ordinary General Meeting of Akbank TAS is scheduled to be held at Sabanci Center, 4. Levent, Istanbul on March 28, 2008 at 14:30, for the purpose of discussing the subjects mentioned in the below agenda.

The agenda of the Ordinary General Meeting:

1- Appointment of the Directing Council and its authorization to sign the minutes of the General Meeting,

2- Announcement of the reports of the Board of Directors, Internal Auditors and the Independent Auditor,

3- Ratification of the Balance Sheet and Profit & Loss Statement for 2007, discharge of the Board of Directors and Auditors from the liabilities born from the operations and accounts of 2007,

4- Decision about the disbursement of 2007 profits,

5- Ratification of new directors, who are appointed to the freed places on Board during the year for the remaining period,

6- Amendment of the 24th article of the Bank’s Articles of Association,

7- Ratification of the selection of the Independent Auditor for 2008 and 2009,

8- Information to the shareholders regarding the donations for 2007,

9- Empowerment of the Board of Directors in connection with matters falling within the scope of articles 334 and 335 of the Turkish Commercial Code.

The amendment in article 24th of the Bank’s Articles of Association is as follows:

Article 24 Constitution of the Board of Directors

The previous article was a follows:

“The Bank is managed and represented by a Board of Directors constituting of nine members to be chosen by the General Assembly from among the shareholders according to the Turkish Commercial Code.

The Chairman and Members of the Board of Directors, the General Manager and his Assistants, Auditors and other authorised persons depicted by the law, are obliged to make an oath after the fulfillment of the legal requirements and within the legal period of time”.

The new article is as follows:

“The Bank is managed and represented by a Board of Directors constituting of members to be chosen by the General Assembly from among the shareholders according to the Turkish Commercial Code.

The number of the Board of Directors can be maximum ten, including the CEO who is an innate member of the Board or his deputy.

The Chairman and Members of the Board of Directors, the General Manager and his Assistants, Auditors and other authorised persons depicted by the law, are obliged to make an oath after the fulfillment of the legal requirements and within the legal period of time”.

Akbank secured a EUR150mn loan from European Investment Bank with a 12 year maturity

Akbank secured a loan from European Investment Bank on 14 December 2007. The Facility is in the amount of EUR 150 million with 12 years maturity of which 2 years is grace. Akbank will be using the funds received to further support the small and medium sized ventures.

Global Finance magazine has announced its 8th annual World’s Best Internet Bank Awards.

In September, the Global Finance magazine announced the 2007 Best Internet Awards on a country, sub-category regional, regional and global winner basis.

Global Finance has named Akbank as the Best Corporate/ Institutional Banks in Turkey and as the Best Consumer -Best Bill Payment & Presentment- in Europe in 2007.

Best Corporate/ Institutional Banks award criteria for choosing the winners included: product offerings, success in migrating existing customers to the Web, acquiring and retaining new customers, improving business processes and cutting costs.

Best Consumer -Best Bill Payment & Presentment- awards criteria for choosing the winners included: market share gains, decreased customer service costs, online strategy for servicing and information securities risks. A report on all of Best Banks will appear in the September issue of Global Finance.

September 28, 2007

Termination of Finsbury Pavement Limited named before as Sabanci Bank plc.

According to the decision taken on September 27, 2007 by the Board of Directors, Akbank’s Executive Management has been authorized the right to terminate Finsbury Pavement Limited by transfering all its banking related assets and liabilities to the London branch of Akbank NV. Finsbury Pavement Limited -named before as Sabanci Bank plc. – is a subsidiary of Akbank established in London.

September 27, 2007

Akbank secured a one-year EUR 1 billion syndicated loan.

Akbank secured a one-year EUR 1 billion syndicated loan with the participation of 54 leading banks from 20 different countries, The amount is the highest ever syndication loan in the Turkish banking industry. The deal, which is signed on August 20th in Istanbul, has an interest rate of Libor + % 0,475 and the proceeds will be used to pre-finance exports.

Akbank Bonus Share Distribution starts on June 28, 2007

Akbank announced on 25.06.2007 that the procedures required to increase the bank’s paid in capital from TRY 2,400,000,000 to TRY3,000,000,000 by 25%, equal to TRY 600,000,000, has been finalized.

Shareholders under Central Registry Agency (CRA) registration will possess their bonus shares with respect to their shareholdings through the registry while unregistered and physically circulating share bearers - with series number 12,13,14,15,16,17,18,19,21,22 - will have to present the share coupon series number 26 to any Akbank branch in order to be allegeable to take their new shares under CRA’s registration, beginning from June 28, 2007.

June 25, 2007

Aviva HE & Ak Pension become equal partners with Akbank becoming bancassurance partner

Following the protocol signed on May 21, 2007 today the below stated agreements are signed between Aksigorta, Ak Pension Fund, Aviva International Holdings Limited (Aviva), Aviva Hayat ve Emeklilik (Aviva HE) and Akbank. Accordingly, Ak Pension Fund and Aviva HE would merge and Aksigorta and Aviva would have equal shareholdings in the merged entity and the new entity's pension and life insurance products will be sold through Akbank branches. According to the year end figures the merged entity is number one with 24.7% market share in pension business in the sector.

Signed Agreements:

Merger Agreement between Aviva, Aviva HE, Aksigorta and Ak Pension Fund,

Shareholders Agreement between Aviva and Aksigorta and Ak Pension Fund,

Agency Agreement between Ak Pension Fund and Akbank,

Fund Management Agreement between Ak Emeklilik and Ak Asset Management

The finalization of the ongoing deal is subject to the permissions and approvals from the related authorities.

June 08, 2007

Tax credit of TRY 270 million has been written as income to Akbank’s financials

The information has previously been made public that the law suit Akbank has opened to the tax authorities regarding the corporate tax and fund payment receivables in total of TRY 754 million for the years of 2001, 2002 and 2003 has ended with a resolution to the benefit of Akbank for the years 2001 and 2002. According to the court decision Akbank has entitlement to receive TRY 686 million in total for the the time being.

Recently, Akbank has been informed by Boðaziçi Tax Authority that TRY 270 million of TRY 485 million receivable for the year 2002 tax payment can be deducted from its tax payables account. Following this announcement Akbank has written TRY 270 million as income to its financials.

Further information about the timing, collection and the period of accounting for the remaining portion of our receivables will be shared to the investment community as soon as any development has taken place with regards to the legal process.

June 7, 2007

Akbank restructured Akbank AG in Germany under Akbank NV in the Netherlands

Akbank’s 100% subsidary Akbank AG in Germany has been transferred to its 100% subsidary Akbank NV in the Netherlands at the book value registered in the records of 235 million Euro, as capital in kind.

June 1, 2007

Akbank is expected to increase its share in Ak Investment Fund to 65.05% from 50.04%

On May 29, Akbank Board of Directors announced that the right to buy 15% of Ak Investment Fund shares which corresponds to a nominal value of TRY 2.7 million from now on up to one year, has been delegated to the Management of Akbank. It is expected that these shares will be bought through the channel of a brokerage company at the market price. As a result of these transactions, Akbank’s share in Ak Investment Fund is expected to increase to 65.05% from 50.04%.

May 29, 2007